a) Your portfolio consists of 340 shares of ABC corporation. The current share price is $107. The company has announced a dividend of $3.5 per share with an ex-dividend date of 19 June. Assuming no taxes, how much will your share be worth on 19 June? What will be the value of your investment in ABC on 19 June? (5)

b) The balance sheet for XYZ Ltd is shown here in market-value terms. There are 34000 ordinary shares outstanding.

Market Value of Balance Sheet
Cash	$350000
Fixed Assets	$1170000	Equity	$1520000
Total	$1520000	Total	$1520000

The company has declared a dividend of $3 per share. The share goes ex dividend tomorrow. Ignoring any tax effects, what is the share selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? (10)

c) Suppose XYZ Ltd has announced it is going to repurchase $44000 worth of shares instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. (10)